Beidler v. Crane

Citations

• 135 Ill. 92
• 25 N.E. 655

Syllabus

<p>1. Fraudulent conveyance — deed absolute in form, but intendedT only as a security. A conveyance of property, absolute on its face but really intended only as a mortgage or security, while good between the-parties, may be fraudulent as to creditors of the grantor.</p> <p>2. The fact that an assignment of letters patent was in form absolute when in reality it was only intended as a security, will render the transfer only constructively fraudulent. If, however, the assigneeshould attempt to justify the assignment as absolute when it is not, this-will afford strong evidence of actual fraud.</p> <p>3. The owner of letters patent made an assignment, unconditional upon its face, but intended merely as a security for moneys advanced and to be advanced. No amount was fixed for the price of the patent. The assignment was duly recorded in the patent office: Held, that the natural and necessary effect of the transaction was to mislead, deceive and defraud creditors of the patentee, and that such transfer was in substance and in fact the creation of a secret trust for the benefit of the assignor.</p> <p>4. An insolvent debtor transferred certain letters patent to another, who had from time to time loaned him money. The assignment was-unconditional on its face, but was in reality by way of security for the moneys loaned and for future advances. The assignee transferred the patent to a corporation, controlled by the debtor, in exchange for capital stock. The testimony of the assignor and assignee differed materially, and the assignee denied notice of the assignor’s insolvency, and fabricated evidences of indebtedness from the assignor to himself, and by his pleading and testimony set up the claim of absolute ownership-to the stock :' Held, that the facts showed that the assignee was guilty of actual fraud in the transfer.</p> <p>5. Same—secret trust reserved. Although an assignment- of a property right be made upon a valuable and ample consideration, without any intention to d